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U.S. Stocks Surge After BofA Sets Upbeat Tone for Earnings

Published 10/17/2022, 09:41 AM
Updated 10/17/2022, 10:28 AM
© Reuters.

© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks rallied on Monday after Bank of America beat expectations on higher net interest income linked to rising interest rates.

At 10:25 ET (14:25 GMT), the Dow Jones Industrial Average was up 549 points, or 1.8%, while the S&P 500 was up 2.6% and the NASDAQ Composite was up 3.2%.

Bank of America Corp (NYSE:BAC), one of the biggest U.S. lenders, added $378 million to loss reserves but said its retail customers were resilient. Loans grew 12% over the past year. Shares of BofA rose 5.8%.

Bank of New York Mellon (NYSE:BK) also got a boost from higher interest rates. Its stock rose 6%.

This week more than 60 S&P 500 companies report earnings, including Netflix Inc (NASDAQ:NFLX), Procter & Gamble Company (NYSE:PG) and Goldman Sachs Group Inc (NYSE:GS).

On Friday, the S&P and the Nasdaq notched their fourth weekly losses in five weeks. The Fed is set to meet in November and is expected to continue on its aggressive path to raise interest rates as inflation shows no sign of abating.

A measure of New York state manufacturing fell in October for the third month in a row. The New York Fed’s general business conditions index fell nearly 8 points, to a minus 9.1 in October. A reading below zero indicates a contraction. Analysts had expected a reading of minus 4.

Meanwhile, amid a market tumult in the U.K., new Chancellor of the Exchequer Jeremy Hunt said nearly all proposed tax cuts there would be abandoned. “A central responsibility for any government is to do what is necessary for economic stability,” Hunt said. Prime Minister Liz Truss had ousted his predecessor just last week.

Oil rose. Crude Oil WTI Futures was up 0.5% to $85.05 a barrel, while Brent Oil Futures rose 0.6%, to $92.16 a barrel. Gold Futures was up 1.1%, to $1,667.

Latest comments

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Everything is awesome! But surely bigger earnings point to a robust economy and therefore bigger rate hikes should be needed?
Its a grand recession … then how one co number can provide guidance to market … its completely speculative market
Maybe 10484.75 this day
This and next week earnings will be good, but after this weeks the stocks will fall again...Sell all stocks in this mini uptick of stock values. Grim future coming soon...
Ok all earnings are good sine they will beat easy no more inflation ath eow
us blackmailing poor people of world.us have to sold their weapons in world.God is looking.
Market try to cheat rally again as usual. Sticky inflation factors like wages, oil are jumping around but forget it only after several days
No inflation already rate cut in November also opec will incrae production and war done China also opens next week easy long
* in parallel universe
irony
Distinguish your hopes and realities.
inflation come down because natural gas prices goes down
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